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Yardley, PA - Pharmaceutical advertising and promotion has been a focal point in the debate on prescription drug costs, which is now reaching a fever pitch across the nation.

According to Verispan's Direct-to-Consumer Advertising Audit, spending on just the DTC portion of pharmaceutical promotion topped $4.3 billion in 2004 - up more than 32% from just a year before.

Critics of pharmaceutical promotion maintain that broadcast advertising and other marketing efforts are primary factors driving the cost of healthcare upward. Pharmaceutical manufacturers disagree, saying their advertising provides a vital educational service to providers and patients alike.

Since the issue first surfaced years ago, Verispan's StateLine(TM) service has monitored the efforts of state lawmakers to influence pharmaceutical promotion within their borders.

Vermont enacted the first broad-based promotional disclosure law in 2002, requiring pharmaceutical manufacturers to disclose to the state -- with limited exceptions -- the value, nature and purpose of any gift or payment provided in connection with marketing activities in Vermont.

StateLine(TM) has also followed other jurisdictions, including California, Maine, West Virginia and the District of Columbia, as they have enacted their own measures to oversee pharmaceutical advertising and promotion. These laws either require manufacturers to report specified marketing information to the state/jurisdiction, or provide the framework for requiring such disclosure in the future.

Pharmaceutical marketers have voiced concern about the possible need to reconfigure their promotional strategies to meet the demands of state marketing disclosure laws that differ in scope and approach. Even more alarming is the prospect of additional states enacting such provisions, creating a statutory minefield that companies will need to carefully navigate.

In 2005, 31 states have introduced approximately 85 pieces of legislation that contain some type of pharmaceutical marketing regulation or restriction.

This year, Maine has enacted three bills that address the issue, including L.D. 1618, which prohibits pharmaceutical marketers, effective October 15, 2005, from advertising on television, radio or print outlets in the state unless the advertisement meets specified federal requirements.

Pharmaceutical marketing issues are still being debated in a handful of states that have not yet adjourned their 2005 legislative sessions.

Verispan Government Affairs has been monitoring state pharmaceutical and healthcare issues for more than 15 years. In addition to StateLine(TM), the department provides services that quantify the impact of Medicaid preferred drug lists and formulary changes, and guide manufacturers as they assess the impact of the Medicare Part D prescription drug benefit.

For more information on StateLine(TM) or any other Verispan Government Affairs service, contact Kevin Monaghan at 800-982-5613; e-mail: kevin.monaghan@verispan.com.

SOURCE: Verispan